Do you think there would be any advantage to participating in syndicated REIT funds as a portion of your risk parity portfolio since they tend to promise higher returns? Has anyone seen statistical data as to whether syndications actually deliver more than a publicly traded REIT?
I see advantages of the public REIT fund as simplicity and low capital requirement but if you are willing to dedicate say 10% of a multimillion dollar portfolio to REITS, you could diversify that over dozens of properties through syndication funds and gain tax advantages in the form of depreciation. These tend to project higher returns while targeting classically less volatile markets that could provide further diversification from the market in general. Besides the increased complexity and tax return filing complications, can anyone see any other drawbacks to these syndications?
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